Is it Time to Consider New Uses for Facilities?

With a large network of facilities and post offices, and yet mail volumes in decline, the U.S. Postal Service finds itself with a good deal of unused capacity. The dynamics over closing and consolidating facilities has raised the question of whether there are other uses for them. Further, the Postal Service could still own the facilities even after it closes or consolidates operations. Rather than sit empty, could the Postal Service use some of that capacity in non-traditional ways to generate additional revenue?


The Long and the Short of It

Some have argued that the U.S. Postal Service should be allowed to raise prices in order to increase revenue and ensure that the sales of their products cover their costs. Others have argued that the current costing system may overstate the cost of some products, as it assumes the Postal Service is able to adjust its capacity, such as quickly closing a facility or eliminating a tour, to match the decline in mail volume.